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2019’s Cities that Overspend on Cars + Q1 Auto Financing Report

With Presidents’ Day approaching and consumers having taken out another $27 billion in auto loan debt in the third quarter of 2018 alone, the personal-finance website WalletHub today released the first-quarter installment of its Auto Financing Report along with its in-depth analysis of 2019’s Cities that Overspend on Cars as well as accompanying videos.

Below are some of our key findings from each of the two reports:

Cities that Overspend on Cars Cities that Spend the Least on Cars
Lake Placid, FLScarsdale, NY
Leesville, LABronxville, NY
Rio Grande City, TXLos Altos, CA
Crosby, TXDarien, CT
San Juan, TXMill Valley, CA
Dahlonega, GAWestport, CT
Mercedes, TXCupertino, CA
Donna, TXPalo Alto, CA
Cordele, GABirmingham, MI
Bastrop, LARidgewood, NJ
Alamo, TXBloomfield Hills, MI
Moultrie, GALexington, MA
Natchitoches, LARidgefield, CT
Brownsville, TXSaratoga, CA
Willis, TXChevy Chase, MD
Eagle Pass, TXGarden City, NY
San Luis, AZWestfield, NJ
Tolleson, AZMelville, NY
Roxboro, NCNewton, MA
Pharr, TXOceanside, NY

Auto Financing Report:

  • Interest rates for new cars are at one of their lowest points in three years, with the average new-car loan today charging 12 percent less interest than the average used-car loan.
     
  • Compared with buyers who have excellent credit, those with fair credit will spend about four times more, or about $6,199, in interest over the life of a five-year, $20,000 loan when financing a vehicle.
     
  • The best options for financing a new car include credit unions (rates at 17 percent below average) and car manufacturers (rates at 13 percent below average). Secondary options include regional banks (rates at 8 percent above average) and community and small banks (rates at 10 percent above average).
     
  • Car manufacturers continue to lack transparency when it comes to leasing offers, with the average automaker receiving a WalletHub Transparency Score of 4.5 out of 10. 

We recommend prospective car buyers to check their credit scores for free on WalletHub and take advantage of a Car Payment Calculator to determine an auto-loan payment and timeline they can afford.

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